Problem 9-10 (AICPA Adapted) On January 1, 2020, Sunrise Company is experiencing extreme financial pressure and is in default in meeting interest payment on a long term note of P6,000,000 due on December 31, 2021. The interest rate is 12% payable every December 31. The accrued interest payable on January 1, 2020 is P720,000. In an agreement with the creditor, the entity obtained the following changes in the terms of note: The accrued interest on January 1, 2020 is forgiven. The principal is reduced by P500,000. The new interest rate is 8% payable every December 31. The new date of maturity is December 31, 2023. The present value of 1 at 12% for four periods is 0.6355 and the present value of an ordinary annuity of 1 at 12% for four periods is 3.0373. Required: Prepare all indicated entries for 2020